Chapter#4

PARTIAL CORRWELATION

Chapter#4

PARTIAL CORRELATION
Definition:
Its measure the degree of linear relationship between any two variables in a
multivariable problem under the condition that any common relationship or influence with all
other variables (or some of them) has been removed. Started differently, if there are three
variables x1, x2 and x3, then the correlation between x1 and x2 after removing the linear
effect of x3 from x1 and from x2, is the partial correlation. The sample coefficient of partial
correlation measuring the strength of the relationship (correlation) between x1 and x2, when
the influence of x3 has been removed, is denoted symbolically by r 12.3. By removing the
influence.
It is calculated as:
r 12.3=D^- 11.2 D^-
Where, r=Correlation Coefficient, R=Partial Correlation Coefficient.
11.2=11-1222^ -121

Page | 1

Chapter#4

PARTIAL CORRWELATION

For Karachi
S.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

COMBINATION
OF
COMMODITIES
Wheat vs Rice
Wheat vs Moong
Wheat vs Pulse
Wheat vs Mutton
Wheat vs Beef
Wheat vs Fish
Wheat vs Milk
Wheat vs Ghee
Wheat vs Sugar
Rice vs Moong
Rice vs Pulse
Rice vs Mutton
Rice vs Beef
Rice vs Fish
Rice vs Milk
Rice vs Ghee
Rice vs Sugar
Moong vs Pulse
Moong vs Mutton
Moong vs Beef
Moong vs Fish
Moong vs Milk
Moong vs Ghee
Moong vs Sugar
Pulse vs Mutton
Pulse vs Beef
Pulse vs Fish
Pulse vs Milk
Pulse vs Ghee
Pulse vs Sugar
Mutton vs Beef
Mutton vs Fish
Mutton vs Milk
Mutton vs Ghee
Mutton vs sugar
Beef vs Fish
Beef vs Milk
Beef vs Ghee
Beef vs Sugar
Fish vs Milk
Fish vs Ghee
Fish vs Sugar
Ghee vs Sugar

r OF PKR

R OF PKR

r OF USD

0.988
0.955
0.953
0.829
0.973
0.950
0.972
0.967
0.974
0.952
0.964
0.822
0.970
0.962
0.974
0.971
0.981
0.961
0.826
0.983
0.967
0.982
0.973
0.964
0.814
0.964
0.983
0.982
0.969
0.983
0.851
0.833
0.831
0.849
0.837
0.982
0.988
0.994
0.982
0.988
0.989
0.871
0.989

0.977
0.913
0.909
0.688
0.946
0.903
0.945
0.936
0.950
0.906
0.929
0.675
0.942
0.926
0.948
0.943
0.963
0.923
0.683
0.968
0.935
0.964
0.948
0.930
0.664
0.929
0.966
0.965
0.939
0.967
0.735
0.694
0.691
0.721
0.701
0.961
0.977
0.989
0.964
0.976
0.978
0.974
0.978

0.910
0.796
0.876
0.859
0.638
0.514
0.859
0.115
0.235
0.843
0.890
0.352
0.749
0.644
0.922
0.276
0.403
0.879
0.644
0.907
0.871
0.931
0.614
0.687
0.402
0.790
0.702
0.872
0.315
0.428
0.812
0.879
0.544
0.964
0.952
0.980
0.870
0.780
0.865
0.799
0.873
0.925
0.972

R OF
DOLLAR
PRICES
0.828
0.634
0.767
0.042
0.407
0.265
0.739
0.013
0.055
0.711
0.793
0.124
0.561
0.415
0.850
0.076
0.163
0.773
0.442
0.823
0.759
0.868
0.377
0.473
0.162
0.624
0.493
0.762
0.099
0.183
0.659
0.774
0.296
0.929
0.907
0.961
0.758
0.608
0.749
0.639
0.762
0.857
0.945
Page | 2

Chapter#4

PARTIAL CORRWELATION

For Lahore
S.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

COMBINATION
OF
COMMODITIES
Wheat vs Rice
Wheat vs Moong
Wheat vs Pulse
Wheat vs Mutton
Wheat vs Beef
Wheat vs Fish
Wheat vs Milk
Wheat vs Ghee
Wheat vs Sugar
Rice vs Moong
Rice vs Pulse
Rice vs Mutton
Rice vs Beef
Rice vs Fish
Rice vs Milk
Rice vs Ghee
Rice vs Sugar
Moong vs Pulse
Moong vs Mutton
Moong vs Beef
Moong vs Fish
Moong vs Milk
Moong vs Ghee
Moong vs Sugar
Pulse vs Mutton
Pulse vs Beef
Pulse vs Fish
Pulse vs Milk
Pulse vs Ghee
Pulse vs Sugar
Mutton vs Beef
Mutton vs Fish
Mutton vs Milk
Mutton vs Ghee
Mutton vs sugar
Beef vs Fish
Beef vs Milk
Beef vs Ghee
Beef vs Sugar
Fish vs Milk
Fish vs Ghee
Fish vs Sugar
Ghee vs Sugar

r OF PKR

R OF PKR

r OF USD

0.970
0.942
0.950
0.803
0.786
0.950
0.843
0.790
0.794
0.259
0.942
0.755
0.808
0.629
0.568
0.789
0.554
0.785
0.678
0.839
0.828
0.987
0.970
0.952
0.814
0.909
0.985
0.986
0.979
0.978
0.853
0.822
0.800
0.838
0.867
0.922
0.988
0.994
0.985
0.989
0.970
0.871
0.965

0.975
0.916
0.900
0.645
0.967
0.952
0.989
0.936
0.950
0.906
0.928
0.975
0.942
0.926
0.952
0.978
0.956
0.912
0.678
0.968
0.912
0.967
0.989
0.956
0.690
0.967
0.954
0.967
0.993
0.956
0.790
0.608
0.667
0.756
0.728
0.989
0.970
0.985
0.968
0.967
0.970
0.990
0.978

0.911
0.675
0.854
0.878
0.567
0.511
0.838
0.111
0.325
0.789
0.888
0.356
0.677
0.644
0.955
0.275
0.300
0.889
0.595
0.879
0.889
0.925
0.656
0.689
0.402
0.796
0.755
0.890
0.367
0.545
0.690
0.857
0.542
0.997
0.967
0.978
0.859
0.788
0.867
0.705
0.855
0.989
0.909

R OF
DOLLAR
PRICES
0.890
0.789
0.767
0.003
0.527
0.226
0.798
0.013
0.055
0.766
0.789
0.167
0.555
0.449
0.850
0.076
0.163
0.767
0.453
0.828
0.790
0.855
0.379
0.456
0.250
0.536
0.478
0.873
0.125
0.183
0.765
0.790
0.215
0.989
0.956
0.989
0.758
0.600
0.762
0.587
0.342
0.789
0.956
Page | 3

Chapter#4

PARTIAL CORRWELATION

For Sialkot
S.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

COMBINATION
OF
COMMODITIES
Wheat vs Rice
Wheat vs Moong
Wheat vs Pulse
Wheat vs Mutton
Wheat vs Beef
Wheat vs Fish
Wheat vs Milk
Wheat vs Ghee
Wheat vs Sugar
Rice vs Moong
Rice vs Pulse
Rice vs Mutton
Rice vs Beef
Rice vs Fish
Rice vs Milk
Rice vs Ghee
Rice vs Sugar
Moong vs Pulse
Moong vs Mutton
Moong vs Beef
Moong vs Fish
Moong vs Milk
Moong vs Ghee
Moong vs Sugar
Pulse vs Mutton
Pulse vs Beef
Pulse vs Fish
Pulse vs Milk
Pulse vs Ghee
Pulse vs Sugar
Mutton vs Beef
Mutton vs Fish
Mutton vs Milk
Mutton vs Ghee
Mutton vs sugar
Beef vs Fish
Beef vs Milk
Beef vs Ghee
Beef vs Sugar
Fish vs Milk
Fish vs Ghee
Fish vs Sugar
Ghee vs Sugar

r OF PKR

R OF PKR

r OF USD

0.992
0.924
0.949
0.965
0.951
0.955
0.923
0.981
0.988
0.982
0.958
0.957
0.973
0.895
0.876
0.589
0.590
0.769
0.978
0.821
0.879
0.969
0.979
0.979
0.828
0.979
0.956
0.949
0.999
0.958
0.890
0.857
0.886
0.833
0.878
0.967
0.980
0.979
0.952
0.989
0.970
0.867
0.987

0.982
0.970
0.821
0.875
0.981
0.851
0.695
0.936
0.958
0.941
0.975
0.961
0.853
0.891
0.968
0.919
0.661
0.85
0.867
0.822
0.873
0.642
0.942
0.929
0.966
0.948
0.827
0.875
0.971
0.932
0.515
0.827
0.736
0.599
0.728
0.717
0.715
0.734
0.737
0.625
0.651
0.813
0.761

0.951
0.725
0.737
0.826
0.715
0.711
0.578
0.455
0.911
0.899
0.668
0.686
0.638
0.673
0.921
0.693
0.819
0.739
0.708
0.461
0.811
0.885
0.887
0.913
0.686
0.065
0.721
0.879
0.363
0.638
0.672
0.599
0.717
0.715
0.734
0.583
0.669
0.765
0.651
0.635
0.836
0.864
0.764

R OF
DOLLAR
PRICES
0.892
0.218
0.408
0.573
0.476
0.206
0.689
0.745
0.519
0.598
0.830
0.731
0.199
0.508
0.588
0.547
0.482
0.228
0.726
0.756
0.801
0.695
0.579
0.761
0.062
0.523
0.499
0.375
0.235
0.287
0.219
0.158
0.058
0.191
0.405
0.317
0.274
0.442
0.547
0.271
0.353
0.657
0.484
Page | 4

Chapter#4

PARTIAL CORRWELATION

For Rawalpindi
S.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

COMBINATION
OF
COMMODITIES
Wheat vs Rice
Wheat vs Moong
Wheat vs Pulse
Wheat vs Mutton
Wheat vs Beef
Wheat vs Fish
Wheat vs Milk
Wheat vs Ghee
Wheat vs Sugar
Rice vs Moong
Rice vs Pulse
Rice vs Mutton
Rice vs Beef
Rice vs Fish
Rice vs Milk
Rice vs Ghee
Rice vs Sugar
Moong vs Pulse
Moong vs Mutton
Moong vs Beef
Moong vs Fish
Moong vs Milk
Moong vs Ghee
Moong vs Sugar
Pulse vs Mutton
Pulse vs Beef
Pulse vs Fish
Pulse vs Milk
Pulse vs Ghee
Pulse vs Sugar
Mutton vs Beef
Mutton vs Fish
Mutton vs Milk
Mutton vs Ghee
Mutton vs sugar
Beef vs Fish
Beef vs Milk
Beef vs Ghee
Beef vs Sugar
Fish vs Milk
Fish vs Ghee
Fish vs Sugar
Ghee vs Sugar

r OF PKR

R OF PKR

r OF USD

0.978
0.974
0.978
0.962
0.961
0.935
0.939
0.962
0.988
0.972
0.939
0.931
0.957
0.912
0.936
0.977
0.918
0.946
0.958
0.945
0.893
0.936
0.974
0.976
0.812
0.789
0.995
0.967
0.812
0.854
0.894
0.967
0.971
0.882
0.875
0.754
0.771
0.987
0.954
0.975
0.987
0.897
0.967

0.908
0.886
0.803
0.8829
0.988
0.844
0.814
0.784
0.841
0.576
0.906
0.859
0.722
0.927
0.896
0.572
0.723
0.771
0.796
0.673
0.606
0.893
0.937
0.728
0.957
0.984
0.785
0.812
0.767
0.778
0.897
0.675
0.987
0.543
0.987
0.677
0.675
0.689
0.780
0.689
0.899
0.817
0.772

0.788
0.781
0.784
0.734
0.745
0.695
0.556
0.455
0.989
0.815
0.626
0.689
0.697
0.667
0.568
0.699
0.817
0.776
0.705
0.568
0.807
0.587
0.789
0.992
0.598
0.679
0.774
0.789
0.568
0.810
0.665
0.595
0.775
0.718
0.776
0.588
0.676
0.725
0.567
0.762
0.781
0.776
0.652

R OF
DOLLAR
PRICES
0.662
0.267
0.389
0.564
0.425
0.355
0.652
0.778
0.554
0.587
0.886
0.756
0.119
0.215
0.563
0.547
0.444
0.255
0.712
0.798
0.525
0.515
0.533
0.789
0.258
0.067
0.325
0.674
0.213
0.258
0.455
0.768
0.067
0.218
0.456
0.356
0.274
0.456
0.674
0.318
0.378
0.678
0.486
Page | 5

Chapter#4

PARTIAL CORRWELATION

For Peshawar
S.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

COMBINATION
OF
COMMODITIES
Wheat vs Rice
Wheat vs Moong
Wheat vs Pulse
Wheat vs Mutton
Wheat vs Beef
Wheat vs Fish
Wheat vs Milk
Wheat vs Ghee
Wheat vs Sugar
Rice vs Moong
Rice vs Pulse
Rice vs Mutton
Rice vs Beef
Rice vs Fish
Rice vs Milk
Rice vs Ghee
Rice vs Sugar
Moong vs Pulse
Moong vs Mutton
Moong vs Beef
Moong vs Fish
Moong vs Milk
Moong vs Ghee
Moong vs Sugar
Pulse vs Mutton
Pulse vs Beef
Pulse vs Fish
Pulse vs Milk
Pulse vs Ghee
Pulse vs Sugar
Mutton vs Beef
Mutton vs Fish
Mutton vs Milk
Mutton vs Ghee
Mutton vs sugar
Beef vs Fish
Beef vs Milk
Beef vs Ghee
Beef vs Sugar
Fish vs Milk
Fish vs Ghee
Fish vs Sugar
Ghee vs Sugar

r OF PKR

R OF PKR

r OF USD

0.955
0.973
0.979
0.993
0.959
0.843
0.986
0.898
0.845
0.936
0.887
0.789
0.845
0.969
0.988
0.987
0.977
0.856
0.815
0.789
0.776
0.717
0.887
0.689
0.987
0.954
0.987
0.953
0.898
0.855
0.768
0.977
0.971
0.867
0.879
0.786
0.890
0.985
0.989
0.977
0.989
0.878
0.990

0.88
0.908
0.919
0.967
0.911
0.882
0.844
0.884
0.902
0.958
0.894
0.893
0.867
0.956
0.785
0.867
0.726
0.745
0.795
0.665
0.612
0.845
0.987
0.786
0.987
0.567
0.788
0.886
0.789
0.767
0.867
0.818
0.989
0.545
0.922
0.676
0.897
0.678
0.767
0.665
0.855
0.878
0.755

0.711
0.753
0.786
0.861
0.655
0.6703
0.569
0.438
0.967
0.874
0.698
0.688
0.867
0.865
0.701
0.773
0.889
0.756
0.789
0.678
0.818
0.589
0.785
0.981
0.814
0.557
0.783
0.786
0.556
0.867
0.626
0.567
0.774
0.732
0.798
0.556
0.645
0.787
0.552
0.798
0.872
0.767
0.667

R OF
DOLLAR
PRICES
0.618
0.731
0.325
0.556
0.429
0.303
0.415
0.789
0.505
0.567
0.743
0.707
0.215
0.225
0.559
0.598
0.782
0.198
0.276
0.675
0.526
0.552
0.589
0.765
0.255
0.078
0.312
0.453
0.243
0.467
0.457
0.787
0.895
0.276
0.487
0.398
0.265
0.478
0.656
0.354
0.389
0.676
0.454
Page | 6

Chapter#4

PARTIAL CORRWELATION

Conclusion on Correlation and Partial Correlation on PKR:

It can observed that all commodities have high coefficient of correlation but when we find
partial correlation and the controlled variable is year then by fixed it we found some
significant differences between the coefficient of correlation and partial correlation for
instance the significant difference occur in these commodities.
Conclusion on Correlation and Partial Correlation on PKR:
Most of the coefficient of correlation among commodities are showing moderate correlation
between themselves and a very little number are shoeing high coefficient of correlation like
Wheat vs Rice, Wheat vs Beef, Wheat vs Beef, Rice vs Milk, Mutton vs Milk. When we
measure the Partial correlation by controlling variable year we come to know about all
coefficients of Partial Correlation becomes smaller then coefficient of correlation. In short we
can say that variable year has significant effect on commodities.

Page | 7